1. Telecom Update APPA Legal Seminar October 2006 L. Elise Dieterich Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

2. Telecom “Hot Topics”  New FCC Commissioners  Telecom Act of 1996 Revisions  Regulatory Framework for Broadband Over Powerlines  Telecom Tax Reform  DTV Transition  Rural Broadband Support Mechanisms Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

3. New FCC Commissioners  Deborah Taylor Tate Republican CommissionerRepublican Commissioner Sworn in January 3, 2006Sworn in January 3, 2006 Formerly Director of the Tennessee Regulatory AuthorityFormerly Director of the Tennessee Regulatory Authority Familiar with utility issues, not just telecommunicationsFamiliar with utility issues, not just telecommunications Active on consumer affairsActive on consumer affairs with NARUC with NARUC Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

4. New FCC Commissioners  Robert M. McDowell Republican CommissionerRepublican Commissioner Sworn in June 1, 2006Sworn in June 1, 2006 Formerly with CompTel, representing competitive facilities-based telecom providersFormerly with CompTel, representing competitive facilities-based telecom providers Stated commitment to “private sector solutions” and removingStated commitment to “private sector solutions” and removing barriers to entry barriers to entry Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

5. Telecom Act of 1996 Revisions  House of Representatives on June 8, 2006, approved “COPE” Act 321 to 101 majority321 to 101 majority Would strip localities of much of their cable franchising authorityWould strip localities of much of their cable franchising authority Eliminates cable build-out requirementsEliminates cable build-out requirements Provides FCC oversight of localProvides FCC oversight of local ROW management and ROW management and customer service customer service Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

6. Telecom Act of 1996 Revisions  Senate bill now under consideration by Commerce Committee replaces COPE Act with Senator Stevens draft  Currently titled “Advanced Telecommunications and Opportunities Reform Act” or ATOR Act, for short  Chairman Stevens is pushing hard for passage passage Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

7. Telecom Act of 1996 Revisions  ATOR Act addresses: Universal Service ReformUniversal Service Reform Reduction of local franchise authorityReduction of local franchise authority Net neutrality provisions in “Internet Consumer Bill of Rights”Net neutrality provisions in “Internet Consumer Bill of Rights” DTV transitionDTV transition Ban on state taxes on Internet servicesBan on state taxes on Internet services Municipal broadbandMunicipal broadband Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

8. Broadband Over Powerlines  State proceedings in California and New York Both consider appropriate regulatory framework to encourage BPLBoth consider appropriate regulatory framework to encourage BPL Each takes different approachEach takes different approach  FCC Order issued August 3, 2006 Generally affirms prior BPL rulesGenerally affirms prior BPL rules Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

9. Telecom Tax Reform  Provisions in Senate ATOR Act would restrict the ability of state and local governments to tax telecom services  Local governments have estimated these provisions could result in the loss of up to $8 billion per year in tax revenues Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

10. DTV Transition  Analog television transmission currently is scheduled to end February 17, 2009  FCC is encouraging public education re DTV transition  Beginning in 2008, households may be able to obtain up to two $40 coupons toward digital converter boxes  NTIA is implementing the coupon program coupon program Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370

11. Rural Broadband Support  New mechanisms are being discussed to increase broadband deployment in rural areas  New focus on the RUS broadband programs  Universal Service reform likely to enhance rural funding mechanisms Duncan, Weinberg, Genzer & Pembroke, P.C. 1615 M Street, N.W., Suite 800 Washington, DC, 20036 Phone: 202-467-6370